What a fundraising process involves—from strategy to funding

Define the funding mandate

Agree what the business needs to raise, the intended uses, suitable routes, and the milestones the funding supports. Test the cash position while the raise is underway. Money expected from a future round should not be treated as available cash.

Define who makes decisions on terms, who leads funder conversations, and who owns the underlying financial information. Where an adviser is involved, record the scope, fees, and payment triggers before starting.

Prepare a consistent funding case

Build a concise business case supported by current accounts, a financial model, ownership information, and key operating evidence. Keep the pitch and model aligned: the same growth assumptions, funding request, and use of proceeds should appear throughout.

For impact businesses, connect the commercial model with the intended outcomes. Explain what you measure, how evidence is collected, and which outcomes depend on assumptions. Reporting expectations will depend on the funder and instrument.

Run outreach as a process

Develop a shortlist based on mandate, geography, sector, stage, and funding size. Track contacts, introductions, responses, questions, and next actions. A large list is less useful than a relevant list with a clear reason for each approach.

Keep one current set of materials. Record which version each funder received and capture feedback that may change the funding strategy.

Manage diligence, terms, and completion

Funders may ask for contracts, forecasts, customer evidence, licences, or information about the team. Assign an owner and deadline to each request. Investigate inconsistencies rather than sending explanations that the records cannot support.

Commercial discussions can cover pricing, ownership, governance, security, covenants, permitted uses, and reporting. Involve appropriate legal and other specialists when reviewing agreements. A term sheet or approval can still leave conditions to satisfy before cash is released.

What commonly slows progress

• The funding request changes without a revised model.
• Financial records and pitch materials tell different stories.
• The business approaches funders outside their mandate.
• No one owns follow-ups or diligence requests.
• Conditions, fees, currency, or disbursement timing are considered too late.

There is no universal fundraising timetable. Build a plan around your funding route and business needs, then update it as discussions progress. Funding decisions remain with the funder.